Russian experts believe that altseason may return this year with new momentum in the altcoin market. VG GROUP Managing Partner Vagiz Nurullov stated that summer is typically a slow period for trading cryptocurrencies due to low liquidity and increased volatility. However, as the summer months fade away, the expert anticipates a more active market ahead, with an increase in open interest and traders engaging in transactions more actively. While September is traditionally a weak month for crypto, the overall market value of cryptocurrencies has continued to rise in early autumn despite fluctuations in Bitcoin prices.
Nurullov emphasized that Bitcoin prices play a significant role in determining the market direction, suggesting that Bitcoin needs to consolidate above the $65,200 mark to confirm a shift from downward trends to an upward direction. He identified several positive forces that are driving the market upwards, including forthcoming FTX investor repayments, the Fed’s willingness to cut interest rates, the upcoming US elections, and crypto market seasonality. Oleg Kalmanovich, an analyst at Neomarkets, echoed these sentiments, attributing the Fed’s rate cut as a trigger for growth in risky assets like cryptocurrency.
Kalmanovich explained that large capital is shifting away from lower-rate dollar deposits towards assets like altcoins, anticipating further rate cuts to drive up crypto activity. He advised observers to monitor the latest US labor market figures and the upcoming US presidential election on November 5, as these events could influence market growth. The banking sector typically provides maximum liquidity before such events, which could boost a wide range of cryptoassets. However, experts caution that the altcoin season ahead may differ from previous seasons due to the extensive range of new crypto projects available for traders to choose from.
Experts predict that a potential first wave of growth could hit the markets by early November, with a second wave emerging by March, depending on the outcome of the US elections. Kalmanovich highlighted assets like NEAR, XRP, and Polkadot as opportunities for growth, as these tokens have lagged behind in price performance this year. These assets could benefit from lower rates in Western economies as a catalyst for growth. Analysts like Moustache have also made similar predictions, suggesting that the upcoming altseason could be the most significant altcoin bull run since 2017.
In conclusion, while Russian experts anticipate the return of altseason this year with new impetus in the altcoin market, they warn that the market landscape will be different from previous seasons. Positive factors such as forthcoming investor repayments, interest rate cuts, upcoming elections, and market seasonality are driving the market upwards. However, caution is advised as traders navigate through a vast array of new crypto projects. Opportunities for growth may arise in assets that have not significantly overbought and are yet to catch up with the market. Monitoring Bitcoin prices, US economic indicators, and geopolitical events will be crucial in determining the direction of the altcoin market in the coming months.
